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PPA signed for South Africa’s largest hybrid dispatchable renewable energy project

Gwede Mantashe, South Africa’s Minister of Mineral Resources and Energy, signed the implementation agreement and Segomoco Scheppers, Eskom’s group executive for transmission. (Image source: ACWA Power)

ACWA Power, a large private water desalination company, has officially signed the Power Purchase Agreement (PPA) for the US$800mn ACWA Power Project DAO, a 150MW dispatchable renewable hybrid plant in the Northern Province, South Africa

Equipped with the largest solar PV installation in the country of 442MW, the plant will have around 1,200MWh of battery storage. When commencement of operations is completed – expected in Q2 2026 – it will add significant dispatchable capacity onto the struggling grid. Moreover, the project DAO includes a significant transmission integration scope for both transmission substation capacity upgrades as well as a new distribution station. Together, these will facilitate access to the grid for other renewable projects in the area. 

“ACWA Power is firmly committed to leading the energy transition in high-growth markets, and we are proud to meaningfully contribute to the socio-economic development of South Africa through our mission to deliver power, desalinated water, and green hydrogen reliably and responsibly at an affordable cost,” remarked Marco Arcelli, CEO of ACWA Power. “Project DAO is set to be yet another ACWA Power flagship project in South Africa, following the success of the Bokpoort and Redstone CSP projects, in offering clean energy to the country and significant socio-economic value to its surrounding communities.”

In addition to ACWA Power, the investor consortium consists of Thebe Investment Corporation and Aventro Investments. These have joined together to make one of the largest hybrid investments in the South African renewable energy sector, currently in construction, according to ACWA Power.

Elsewhere in the Northern Province, TotalEnergies and its partners have begun construction of a 216MW solar plant and accompanying battery storage province. Click here to discover the full story.

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